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Posted by on Apr 11, 2018 in Accounting |

Basic Steps of Tax Return Preparation

The U.S. government estimates that around 60% of its populace uses a paid preparer to handle their tax returns. When it comes to tax returns, it’s best to start as early as you can, in order to have the ideal experience, and in order to get it all under control before the April 17th cutoff date. If you need help with tax return preparation in Yonkers NY area, here are the basic steps of the process.

#1. Schedule an appointment with your preparer

If you already have a preparer on payroll, schedule an appointment as soon as possible. Such prompt action is particularly encouraged if you seek a refund, so that you can receive the money in full and in short order. Even if you don’t seek a refund, quickly establishing an appointment is encouraged, since waiting too long may cost you the ability to see your preparer at all before the due date. Tax preparers are busy folk, so it’s best to see them as soon as a spot opens up for you.

#2. Gather your information returns

You should receive all the different types of information returns that you need for your tax returns by the end of January. You should verify that each and every form matches your information to the letter before filing them in your tax returns. Some of the forms you’re likely to receive are:

  • Various form 1099’s to report income like cancelling debt, nonemployee payment to independent contractors, and dividends.
  • Form W-2 if you are actively employed
  • 1098 forms, which include mortgage, student loan interest, and tuition payments
  • And form W-2G’s if you gamble often

#3. Get receipts together

While you don’t have to keep all of your receipts, you should hold onto as many as you can. Which ones you’ll need specifically depend on whether you itemize your personal deductions rather than claim the standard deduction. And if you have business income, it helps to have some kind of organizational software to keep it all straight. This will make it much easier for your preparer to get all of your documents in order, now that they have less to keep track of.

Preparing for tax returns becomes much easier when you have a preparer to do the bulk of the work for you. Which is why 60% of the American people utilize these services. These basic steps will help you and your preparer make up your tax returns in a quick and decisive fashion. Accutax Business Center is a reputable firm that handles tax preparation services. Contact them today to learn more.